If you are running your own small business, you will want to open up a business bank account. A business banking account will allow you to separate your business and personal finances and will provide you with great control over your business finances. With a business checking account, there are some features you are going to want to look for.
1. Service Fees
With business checking accounts, free accounts are not as common as they are with personal checking accounts. Instead, you are going to find that business checking accounts tend to come with service fees.
It is essential to consider the service fees for different banks and what is included in that service fee. Often, the service fee covers extra features, such as payroll services. The service fees are more worth it if you are using those different features.
Additionally, some banks may waive your service fees if you meet specific criteria. That usually includes maintaining a certain minimum balance throughout the month or using multiple services with the same bank.
2. Minimum Balance Requirement
With a business checking account, there is often a minimum balance requirement that you have to maintain. You may have to make a deposit of a certain size to open your account, and then you will need to keep a certain minimum daily balance. You will want to consider what type of minimum balance you can maintain and choose a bank where you will easily meet this goal.
3. Types of Transactions
Next, you will want to find out what type of transactions you can do with your account. Some bank accounts will allow a certain number of free transactions and then charge you for additional transactions. Other banks may offer unlimited transactions for free. Consider how many transactions your business does monthly and choose a bank that will allow you to conduct those transactions and save money.
4. Deposit Allowance
Finally, you are going to want to consider what the deposit allowance is. Some banks will only allow you to cash a certain value of checks per month, or they may only allow you to make a certain amount of cash deposits per month.
Think about the type of transactions that your business engages in, and work to find a bank that will allow you to conduct all the specific transactions you need without hitting a limit or fee wall.
With a business checking bank account, you need to think about how you use your account so that you can choose an account that will allow you to do what you need without running up a lot of financing fees.